Written Answers Nos. 110-129
110. Deputy Róisín Shortall asked the Minister for Transport the steps that are being taken to improve public safety on public transport in Dublin city, in particular in train stations and at busy bus stops; and if he will make a statement on the matter. [38454/22]
View answerThe safety and security of both public transport passengers and staff, including arrangements to deal with anti-social behaviour, are important matters that, first and foremost, must be managed by every public transport company, in conjunction with An Garda Síochána where appropriate. The National Transport Authority (NTA) is also engaged with public transport operators regarding the issue of anti-social behaviour.
As such, decisions regarding a dedicated transport police unit and the allocation of Garda resources are matters for the Minister of Justice and the Garda Commissioner. I am given to understand that the views of An Garda Síochána are that effective local community policing can meet the policing needs of the public transport network and that the Garda authorities do not propose to establish a specialist or dedicated transport policing unit at this time.
Nonetheless, the Department has been engaging regularly with the NTA and the three CIÉ companies, on the issue of anti-social behaviour and a significant number of actions have been taken. These include;
- On the 29th of July, Iarnród Éireann, Transdev & An Garda Síochána will carry out a joint awareness day (operation twintrack) to prevent anti-social behaviour on our services and to raise awareness of staying safe on public transport.
- Joint Garda & Iarnród Éireann high visibility public safety operations took place across the network over the Easter period with a number of fines issued. Reportable ASB incidents on Irish Rail have reduced from 654 in 2020 to 549 in 2021.
- IÉ Security Centre at Howth Junction - Iarnród Éireann have appointed a supervisory team who coordinates the security response in the Greater Dublin Area. Additionally, there is the deployment of public facing Security Teams in identified Anti-social behaviour hot spots across the DART and Rail Network.
- There are now nine Rapid Response Hubs in operation across the IÉ Intercity Network with the latest, Mullingar, having come into operation from 9th May 2022 (The 9 locations: Mallow, Limerick Junction, Thurles, Portlaoise, Athlone, Kildare, Longford, Castlerea and Mullingar). These hubs are now fully operational with all onboard staff have dedicated phone numbers for each of the hub locations in the event they require assistance. These hubs provide reassurance for both staff and customers. The Kilkenny hub is due to come into operation in mid July 2022, which will complete the first phase of this initiative. This means should on-board staff request assistance by calling ahead to the next Garda Rapid Response Hub, they will receive priority service to deal with any issue. Since coming into operation, this level of response from An Garda Síochána has had a very positive impact in reducing the potential for such passenger issues escalating.
- Iarnród Éireann have recruited a Security Enforcement & Compliance Manager and a Crime Prevention & Antisocial Behaviour Officer to design out crime.
- CCTV is available on most trains and has successfully been used on numerous occasions in securing prosecutions. They are also in place in stations.
- A DART text alert line has been established for discrete reporting of Anti-Social incidents.
- In respect of Dublin Services, Public Transport Hubs have been established for Heuston Plaza and Connolly Plaza. A third one at Broombridge, Cabra, will come into operation shortly. This is a Joint initiative between public transport providers Iarnród Éireann/Transdev (LUAS)/Dublin Bus/Bus Éireann and An Garda Síochána Community Engagement Units at Kevin Street, Store Street and Cabra.
- Transdev/ LUAS employ 50 security staff. These staff are involved in maintaining safety and security on the Luas, along with enforcing the Luas bye-laws. They liaise with An Garda Síochána regularly as part of their work.
- In relation to security on our public bus services, the entire Dublin Bus fleet is fully fitted with CCTV cameras, with up to 11 internal cameras and three external cameras fitted on the more modern vehicles in the fleet. Each vehicle is equipped with a radio, which facilitates immediate contact to the Central Control Centre.
- Dublin Bus has also re-introduced their Schools Education Programme (previously suspended due to Covid-19) which involves educating young people about the importance of the bus in their lives and in their local community. The work of their School and Community Co-ordinators has also proven highly successful in encouraging young people to respect their bus and has assisted greatly in the reduction of incidents of anti-social behaviour.
- Beyond this Dublin Bus has a strong and close working relationship with An Garda Síochána and have set up a number of community forums in different areas across the city. These forums are made up of Dublin Bus representatives, the Gardaí, local area representatives, community groups and Trade Union Representatives.
- Bus Éireann has similarly also invested in extensive CCTV coverage throughout its fleet for the protection of passengers and staff. Emergency support for drivers is provided through 24-hour control centres and any incidents of anti-social behaviour are fully investigated and followed up with An Garda Síochána as required.
- All Bus Éireann city and town buses are fitted with driver security screens. Security personnel are employed in our larger bus stations and extensive CCTV is also in operation throughout all stations to ensure the security of our staff, customers and property. Furthermore, customer research shows that 93% of Bus Éireann customers feel safe and secure during their journeys.
The combined interventions implemented to date across our public transport services have substantially helped to tackle anti-social behaviour; however, this is an issue which will require on-going monitoring. As such, I am committed to continuing to work collectively with all stakeholders to ensure the safest possible travel environment for members of the public, and the safest possible working environment for the employees providing our valuable public transport services.
111. Deputy Niall Collins asked the Minister for Transport his plans, if any, to regulate the use of electric scooters; the details of same; and if he will make a statement on the matter. [38455/22]
View answerThe Government is committed to legislating for e-scooters. The Road Traffic and Roads Bill 2021, which recently completed committee stage in the Dáil, creates a new category of vehicle in the Road Traffic Act, 1961 called powered personal transporters (PPTs), which will not need registration, licensing, taxation or a driving licence. The PPT category will include powered light micro-mobility vehicles such as e-scooters. The Bill has provisions to allow for regulation of the use of PPTs on public roads.
Establishing this new category of vehicle enables, in secondary legislation, the establishment of appropriate technical and safety standards and rules for the use of e-scooters. It is expected that the Bill will be finalised before the end of 2022 and regulations will follow. Preparatory work to draft both usage and technical regulations for e-scooters has commenced.
113. Deputy Sorca Clarke asked the Minister for Transport if he will consider the cost-of-living and fuel costs of reinstating the Dublin-Galway bus route which would offer public transport options currently not available. [38702/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally.
In light of the NTA's responsibility in this area, I have forwarded the Deputy's specific question in relation to the cost-of-living and fuel costs of reinstating the Dublin-Galway bus route which would offer public transport options currently not available, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
114. Deputy Holly Cairns asked the Minister for Transport his views on providing fully accessible changing places and toilet facilities open to the public in all buildings which his Department owns and public bodies and agencies under his remit to offer people with disabilities and carers a network of equipped spaces to take care of personal hygiene, in safety and comfort. [38729/22]
View answerAt present my Department has no offices which are open to the public. Any broadening of access to buildings would need to have regard to a number of relevant considerations, including security issues, to ensure that our staff and the public are safe.
I have referred your question to the agencies under the aegis of my Department for direct reply. Please contact my private office if you do not receive a reply within 10 days.
115. Deputy Holly Cairns asked the Minister for Transport the way that his Department and public bodies and agencies under his remit are implementing action 32 of the National Disability and Inclusion Strategy 2017-2021 (details supplied). [38747/22]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport.
The National Transport Authority (NTA) has statutory responsibility for promoting the development of an accessible, integrated and sustainable public transport network. The NTA works with the relevant public transport operators, who have responsibility for day-to-day operational issues, to progressively make public transport accessible.
As required under the National Disability Inclusion Strategy (NDIS), my Department has in place a disability consultative committee, known as the Accessibility Consultative Committee (ACC). The ACC’s role is to monitor and review progress in relation to the implementation of actions under the NDIS where my Department and/or its agencies, have the lead role. Membership of the ACC is drawn from:
- organisations representing people with disabilities,
- members of the Disability Stakeholders Group (DSG),
- key agencies under the aegis of my Department, and
- other relevant State Agencies.
Further information on the ACC, including the minutes of ACC meetings, and presentations to the ACC can be accessed at the following link: https://www.gov.ie/en/organisation-information/ae763e-accessibility-consultative-committee/
Bus Éireann, Dublin Bus, Go-Ahead, Iarnród Éireann and Transport Infrastructure Ireland (TII) each has an Access Officer and a Disability User Group. The User Groups provide a forum for operators to consult with and update disability organisations on accessibility proposals and developments, and for disability organisations to raise operational and other accessibility issues.
In Q1 2022 the NTA set up a Transport User Advisory Group (TUAG) which is made up of 15 members, representing a range of users of public transport and active travel. The TUAG includes three members representing people with disabilities and one member representing elderly people.
116. Deputy Ivana Bacik asked the Minister for Transport the amount ringfenced for cycling investment in 2022; the amount that will be available in 202; if he will provide similar figures for active travel measures; and if he will make a statement on the matter. [38758/22]
View answerThis year I have made €289m available to local authorities through the National Transport Authority (NTA) to progress the delivery of approximately 1,200 Active Travel projects throughout the country in addition to an investment of €60m in Greenways. The NTA has responsibility for the allocation of funding to specific projects and oversight of their development, in cooperation with the relevant local authorities. Noting their responsibility in this area, I have forwarded your question to the NTA for a more detailed reply in relation to the investment in cycling in 2022.
While the details of budget 2023 have not yet been finalised it is expected that similar levels of funding will be available for investment in cycling and walking in 2023.
The Deputy should also be aware that local authorities can also access funding sources through other Departments to support walking and cycling infrastructure development. The two most significant are the Urban Regeneration and Development Fund (URDF), which falls under the remit of the Department of Housing, Local Government and Heritage, and the Rural Regeneration and Development Fund (RRDF), overseen by the Department of Rural and Community Development. The latter Department also supports leisure orientated walking and cycling through the Outdoor Recreation Infrastructure Scheme (ORIS).
117. Deputy Ivana Bacik asked the Minister for Transport if he will provide the allocations for public transport in 2022; the additional increases provided in the most recent Budget in tabular form; and if he will make a statement on the matter. [38759/22]
View answerIn Budget 2022, €538m was secured to support Public Service Obligation (PSO) services, including over €200m to address COVID expenses (i.e. loss of fare revenue, cleaning costs). €9m of the €538m allocation has been provided as ongoing support for the licensed bus sector for the first six months of the year. While, over €15m was also allocated to support Local Link regular service provision in rural Ireland. In addition to the REV22 allocations, €54m in Exchequer funding has been secured to allow for the introduction of the 20% discounted fares.
The actual allocations to the transport operators for the provision of public transport services are decided by the National Transport Authority (NTA) in exercise of its statutory mandate and in accordance with the various contract arrangements that it has in place with PSO service providers.
Therefore, in light of the NTA's responsibility in this area I have forwarded the Deputy's specific question in relation to the allocations for public transport in 2022, to the Authority for direct reply. Please advise my private office if you do not receive a response within ten working days.
118. Deputy Peadar Tóibín asked the Minister for Finance the way that the Office of the Revenue Commissioners researched the level of empty homes in each county in Ireland; the reason that its figures are at odds with those produced by the Central Statistics Office by over 100,000 homes; if it is his contention that the CSO is wrong in its quantification of empty homes; and the rate of tax that he will apply to empty homes. [38195/22]
View answerI am advised by Revenue that it has recently published a report setting out analysis of residential property vacancies as reflected in the Local Property Tax (LPT) returns for 2022. This report is available at www.revenue.ie/en/corporate/documents/statistics/lpt/lpt-vacant-properties-report.pdf.
I am advised by Revenue that the data in this report are not directly comparable to that reported by the Central Statistics Office (CSO) in its Census findings, due to the differing bases for the data and the differing methodologies used to collect it. These differences are analysed in some detail in the report at pages 10 and 11 and I would refer the Deputy to this for more detail on this matter.
In summary, the Revenue data are derived from declarations made by taxpayers on the LPT returns, whereas the CSO data reflect the observations of Census enumerators. Revenue data is also limited to properties where a liable person was required to make an LPT return. Properties that were uninhabitable or unsuitable for use as a dwelling as at 1 November 2021 are not liable for LPT for 2022. Owners of these properties were not required to value their property for LPT purposes and they were not required to submit an LPT return. Therefore, information from the returns will not include properties that are not liable for LPT in 2022, such as derelict or otherwise uninhabitable properties.
Revenue data reflects property owners’ self-assessment of the status of their properties in the context of the 4-year LPT valuation period. Property owners may not have considered properties to be vacant for the purposes of the LPT declaration where they were temporarily unoccupied for reasons such as short-term renovation, hospitalisation, travel, overseas assignments, or properties between lettings.
The CSO uses different methodologies and definitions of vacancy when conducting the Census. It is also worth noting that the CSO data reflects a specific point in time, i.e. Census Night on 3 April 2022 and includes properties that were vacant for a short period of time that may well have been occupied again a few weeks after Census night. It should be noted that this is a point in time measure of vacancy relating to the weeks either side of Census Night. The Census measure is not intended to be a measure of long term vacancy or that these properties are available for re-use.
Each model is valid for its primary purpose, and it is not unexpected that the figures from the Census and the LPT returns would differ.
Further information on the CSO measure of vacancy is available at www.cso.ie/en/census/census2022/census2022andvacantdwellingsfaq/.
119. Deputy Jackie Cahill asked the Minister for Finance if his attention has been drawn to the fact that a new board is not in place for the Disabled Driver’s Medical Board of Appeal; if his attention has been drawn to the fact that no appeals can be heard for persons who require disabled drivers permits but have been refused; the way that he plans to address this issue; and if he will make a statement on the matter. [38197/22]
View answerThe Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the following medical criteria, in order to obtain a Primary Medical Certificate:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA) who operate out of the National Rehabilitation Hospital in Dun Laoghaire.I have no role in relation to the granting or refusal of PMCs and the HSE must be independent in their clinical determinations. Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal an Expression of Interest seeking suitable candidates for the Board closed on 29th April 2022. The selection process is nearing its final stages for this initial round of recruitment. A second Expression of Interest campaign, which closed on the 5th July, was launched to seek additional applicants. The selection process for this campaign is ongoing.
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place and is in a position to re-commence appeal hearings. Assessments for the primary medical certificate, by the HSE, are continuing to take place.
120. Deputy Jackie Cahill asked the Minister for Finance if he plans to inform the Disabled Driver’s Medical Board of Appeal when it can recommence its clinics; if his attention has been drawn to the fact that the Board cannot hear appeals given that it cannot hold clinics; and if he will make a statement on the matter. [38198/22]
View answerThe Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the following medical criteria, in order to obtain a Primary Medical Certificate:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA) who operate out of the National Rehabilitation Hospital in Dun Laoghaire.I have no role in relation to the granting or refusal of PMCs and the HSE must be independent in their clinical determinations. Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal an Expression of Interest seeking suitable candidates for the Board closed on 29th April 2022. The selection process is nearing its final stages for this initial round of recruitment. A second Expression of Interest campaign, which closed on the 5th July, was launched to seek additional applicants. The selection process for this campaign is ongoing.
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place and is in a position to re-commence appeal hearings. Assessments for the primary medical certificate, by the HSE, are continuing to take place.
121. Deputy Michael Creed asked the Minister for Finance if tax relief is available for third-level university fees and for accommodation costs for university students; and if he will make a statement on the matter. [38315/22]
View answerSection 473A of the Taxes Consolidation Act 1997 provides for income tax relief in respect of qualifying tuition fees paid by an individual for a third level education course (including a postgraduate course), subject to the conditions set out in that section. The relief is granted at the standard rate of income tax (currently 20%), where an individual pays “qualifying fees” for an approved course whether on his or her own behalf or on behalf of another individual.
“Qualifying fees” mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”. No other charges and levies qualify for tax relief e.g. administration fees, student centre levy, examination fees, capitation fees. Tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means are deducted in arriving at the net qualifying fees.
The maximum amount of fees that can qualify for the relief is €7,000 per person, per course, per academic year. Each claim is subject to a single disregard amount each tax year. This amount is taken away from the total qualifying fees for the claim, such that relief can't be received on the disregarded portion. The disregard is currently €3,000 in the case of a full-time student and €1,500 for a part time student. If a claim has been made for more than one student or course, this disregard amount will only be deducted from the claim once.
Full details of the relief, including the conditions that apply, are set out on the Revenue website at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx
While there is no specific provision for tax relief in relation to the accommodation costs associated with attending third level education, the Rent-a-Room scheme supports the accommodation needs of third level students and others by providing significant levels of relief to accommodation providers offering rooms for rent within their sole or main residence. The relief is offered, inter alia, to providers of accommodation for full or part-time students, including lettings for an academic year, an academic term or four-day-a-week "digs".
As the Deputy will appreciate, proposals in respect of tax expenditures are dealt with in the context of the annual Budget and Finance Bill process. When considering such measures, I must be mindful of the public finances and the many demands on the Exchequer; tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base. Under my Department's Tax Expenditure Guidelines, tax measures should only be considered in circumstances where there is a demonstrable market failure and where a tax-based incentive is more efficient than a direct expenditure intervention.
122. Deputy Carol Nolan asked the Minister for Finance the actions that his Department and bodies under the aegis of his Department are taking to increase recruitment of members of the LGBTQIA+ communities; and if he will make a statement on the matter. [38408/22]
View answerMy Department continually seeks to grow its people and enhance its culture to deliver an inclusive place to work and an environment where talented people are engaged, valued and choose to work to provide a world class service and expertise to the State. Recruitment to the Department and wider Civil Service is managed centrally by the Public Appointments Service (PAS). As such, recruitment policies on increasing representation of the LGBTQIA+ communities are determined in the first instance by PAS and the Department of Public Expenditure and Reform. The standards for recruitment and selection for the Department/Civil Service are set by the Commission on Public Service Appointments (CPSA). PAS is tasked with carrying out external requirements from Clerical Officer through to Principal Officer level, and PAS also administer any TLAC recruitment needs. It should be noted that recruitment is merit based and for external recruitment (i.e. open and interdepartmental) the Department has no choice on whether the candidate is a member of the LGBTQIA+ community, as we are allocated the next candidate on the panel.
123. Deputy Ged Nash asked the Minister for Finance when the Tax Strategy Group papers will be published; and if he will make a statement on the matter. [38609/22]
View answerAs the Deputy will be aware, the Tax Strategy Group (TSG) is in place since the early 1990’s and is chaired by the Department of Finance with membership comprising senior officials and political advisers from a number of Civil Service Departments and Offices.
Papers on various options for tax policy changes are prepared annually by Department of Finance officials. The TSG is not a decision making body and the papers produced by the Department are simply a list of options and issues to be considered in the Budgetary process. Any papers relating to PRSI and social welfare issues are also prepared for the Group by the Department of Employment Affairs and Social Protection.
The Tax Strategy Group meeting was held earlier this week and the papers will be published in the coming weeks as is the normal practice.
124. Deputy Ged Nash asked the Minister for Finance the amount raised annually by the bank levy since it was introduced in 2014; the projected yield in 2022; the details of the current method of calculation in tabular form; and if he will make a statement on the matter. [38610/22]
View answerSection 126AA of the Stamp Duties Consolidation Act 1999 imposes an annual levy, known as the “bank levy”, on certain financial institutions. When the levy was first introduced, it was decided that the yield would be maintained at a fixed amount of approximately €150m every year. To arrive at this fixed amount, the charge is based on a percentage of Deposit Interest Retention Tax (DIRT) paid by certain financial institutions in a specified base year. For the charge arising in the years 2021 and 2022, the levy is calculated using the base year of 2019 and a rate of 308%.
However, as Ulster Bank and KBC Bank are in the process of leaving the Irish market, both are excluded from the charge for 2022. This means that the charge will raise approximately €87m in 2022, instead of €150m. In the event the deposits associated with Ulster Bank’s and KBC Bank’s levy are transferred to another institution prior to the payment due date in October 2022, those deposits will not be subject to the levy either.
Details of the amount of the bank levy collected for the period 2014-2021 (and an estimate for 2022), as well as how the levy is calculated, are set out in tabular form below:
|
Year Bank Levy Due |
Base year |
Total DIRT in base year (€m) |
*Levy as % of DIRT |
Actual yield (€m) |
|
2014-2016 |
2011 |
€435 |
35% of DIRT |
€463 |
|
2017-2018 |
2015 |
€300 |
59% of DIRT |
€297 |
|
2019-2020 |
2017 |
€118 |
170% of DIRT |
€310 |
|
2021 |
2019 |
€64 |
308% of DIRT |
€150 |
|
2022 |
2019 |
€64 |
308% of DIRT |
€87 estimate |
* Certain DIRT payments, such as those by Credit Unions, are not included when calculating the levy
I am advised by Revenue that the exact annual yield from the bank levy is published on the Revenue website at: www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-stamp-duty.aspx.
125. Deputy Ged Nash asked the Minister for Finance the yield to the State in each of the past five years from dividends from the State shareholdings in banks; the projected yield in 2022; and if he will make a statement on the matter. [38611/22]
View answer126. Deputy Ged Nash asked the Minister for Finance the yield to the State in each of the past five years from dividends from the State shareholdings in banks; the projected yield in 2022; and if he will make a statement on the matter. [38612/22]
View answerI propose to take Questions Nos. 125 and 126 together.
In answering the Deputy's question, I should note that a recommendation to pay dividends is the sole responsibility of the board and management of the banks. I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding and as such it would not be appropriate for me to speculate on the projected dividend yield for 2022.
I also wish to highlight that ECB guidance in relation to the COVID-19 pandemic in March and December 2020 impacted on dividend distributions for 2020 and 2021. AIB and BOI withdrew their proposed dividend for the year ended 31 December 2019 (PTSB had not proposed a dividend at this time) which was due to be paid in 2020. None of the banks paid a dividend during 2021.
The total yield to the State across the past five years from dividends from the State shareholdings in banks is €689 million. The below table sets out the dividends received by year and institution for each of the past five years.
|
Dividends Received (€ million) |
AIB |
BOI |
PTSB |
|
2018 |
232 |
17 |
0 |
|
2019 |
328 |
24 |
0 |
|
2020 |
0 |
0 |
0 |
|
2021 |
0 |
0 |
0 |
|
2022 |
86 |
2 |
0 |
Please note that the dividend received in each year relates to the previous financial year in the banks. Hence the dividend received in 2022 relates to the banks 2021 financial year etc.
127. Deputy Ged Nash asked the Minister for Finance the projected yield to the Exchequer of introducing a new windfall profits tax on energy providers if the corporation tax rate on their profits was increased from 12.% to either 25%, 27.5% or 50% respectively; the additional yield if a different approach of a 25% levy on profits was introduced; if any work has been carried out in his Department to evaluate a windfall tax on energy companies; if briefing or discussion papers have been prepared on same; and if he will make a statement on the matter. [38613/22]
View answerEnergy policy, including increasing costs of energy supply and the taxation of profits, is a matter of key concern to the Government. In April, the Government approved and published the National Energy Security Framework, which sets the overarching response to the impacts of the war in Ukraine on the energy system in Ireland. The Framework outlines the structures which are in place within Government to monitor and manage our energy supplies, it sets out the plans which are in place to deal with energy security emergencies and it sets out how Government can support households and businesses save energy and save money.
The Framework includes a commitment to work with the European Commission and other Member States to consider the proposals set out in the EU’s REPowerEU plan. Under REPowerEU, it is considered that taxation or regulatory measures aimed at removing gains created by the current crisis situation could be considered.
The increasing cost of energy supply is complex and there are many factors which must be considered including energy security, rising input costs and costs to consumers, and the need to reduce dependence on fossil fuels. The complexities of the energy market and the range of producers and contracts must also be acknowledged. The Renewable Energy Support Scheme (RESS) contains strong consumer protection measures, with wholesale market revenues above the auction price returned to electricity consumers through the Public Service Obligation Levy. All of these aspects must be considered in connection with proposed new policy measures.
Energy policy is under the remit of the Department of the Environment, Climate and Communications (DECC). The Energy Security Energy Group, which is chaired by DECC and includes the Commission for Regulation of Utilities, is considering these issues in its role overseeing the implementation of the National Energy Security Framework.
Officials in DECC are working to examine where gains created by the current crisis situation may be occurring and to consider what, if any, action would be appropriate having regard to over-arching energy policy. This includes engaging with Department of Finance officials to determine potential fiscal response measures. This ongoing work includes consideration of potential negative impacts of any such action. For example, there is a risk that a windfall tax may lead to higher consumer costs and negatively impact upon investment in the energy sector, particularly in the area of renewables. This would negatively impact the Government's ambitions to tackle climate change through the reduction of carbon emissions.
It is worth noting that the Government has taken a number of measures to reduce the burden on consumers in relation to the cost of energy. This includes providing €200 worth of energy credit to every household in the country; reductions in fuel excise duty; and a reduction in the VAT rate for electricity and gas.
With regard to the projected yield to the Exchequer of introducing a new windfall profits tax on energy providers. Trading profits of companies in Ireland are generally taxed at the standard Corporation Tax rate of 12.5%.
I am advised by Revenue that the gross additional yield from increasing the corporation tax rate from 12.5% to 25%, 27.5% or 50% on the taxable profits of all energy providers is tentatively estimated to be in the region of €90 million, €108 million and €271 million respectively, for a full year. These estimates are based on the 2020 tax returns of energy providers, the latest year for which fully analysed data are available. On the same basis, a separate 25% levy on taxable profits, in addition to corporation tax, would yield in the region of €180m.
It should be noted that these estimates do not take account of any potential change in behaviour by the entities concerned in response to changes in the tax rate.
128. Deputy Ged Nash asked the Minister for Finance the process that led to the increase in the amount under tax measures from the €0.5 billion in the Stability Programme Update to €1.05 billion in the Summer Economic Statement; and if he will make a statement on the matter. [38620/22]
View answerGovernment set out its medium-term budgetary strategy in the Summer Economic Statement last year. This incorporated assumed tax packages of €0.5 billion each year.
However, as the Deputy is aware, the economic environment has changed considerably since last year, with inflation now running at the highest level in decades. In recognition of this, Government set out an update to the budgetary strategy in this year's Summer Economic Statement. For next year, the tax package has been increased to €1.05 billion. This is a reflection of the need to adjust the fiscal parameters in light of the current inflationary environment.
While the specifics of tax policy measures to be introduced will be decided during the budgetary process, I have stated previously that a key objective of Budget 2023 will be to ensure that workers do not pay more income tax simply because they have moved into higher tax brackets as a result of inflation.
Finally, I would emphasise that this amendment to the budgetary strategy is a once-off change for 2023 only. After next year, my Department expects inflation to moderate over the medium-term. On this basis, for future years the strategy remains unchanged, with tax packages of €0.5 billion incorporated per annum.
129. Deputy Ged Nash asked the Minister for Finance the gross amount of tax relief provided for pension contributions in each of the past five years for which full figures are available in tabular form [38623/22]
View answerI am informed by Revenue that the costs to the Exchequer, in relation to tax reliefs provided for pension contributions, are available at the following link, for the period 2014 to 2018:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
The information requested by the Deputy is available in the table rows titled “Pension Contribution (Retirement Annuity and PRSA)”, “Employees' Contributions to Approved Superannuation Schemes” and “Employers' Contributions To Approved Superannuation Schemes”. The costs for “Exemption of employers' contributions from employee BIK” for the same period are also included in this publication.
For the convenience of the Deputy, the following table sets out the relevant tax costs for the years 2014-2018:
|
Cost of tax Expenditure |
2018 €m |
2017 €m |
2016 €m |
2015 €m |
2014 €m |
|
Pension Contribution (Retirement Annuity and PRSA) |
241.3 |
229.3 |
221.3 |
216 |
214 |
|
Employees' Contributions To Approved Superannuation Schemes |
677.7 |
598.1 |
582.4 |
580.6 |
548.8 |
|
Employers' Contributions To Approved Superannuation Schemes |
173.2 |
159.8 |
158.4 |
147 |
138 |
I am further advised by Revenue that 2019 information will be published in the coming weeks at the same location. The total cost for “Pension Contribution (Retirement Annuity and PRSA)” and “Employees' Contributions to Approved Superannuation Schemes” for 2019 was €1,111m.
I trust this is of assistance.
